22 JUNE 2017 • 10:45AM
Get connected: if a landlord is unhappy with the service, the first step is to speak directly to the agent CREDIT: SHUTTERSTOCK
Lack of communication ranks high among the complaints landlords have about their letting agents.
As one London lettings agent puts it, there are three elements that make the lettings business “a toxic mix”. There is the landlord, who wants the highest rent and lowest spend on repairs and maintenance. There’s the tenant, who wants the highest quality for the lowest price. And there’s the property, which is prone to have leaks and other problems.
“That is why it’s vital to have open communication and a good lettings agent. The main issue I hear from landlords is lack of communication from their agent,” says Mark von Grundherr, lettings director at Benham & Reeves.
“Agents are all over the landlord when agreeing the let, but after that – and if things go wrong in the property – many agents will back off and try to keep out of the loop.”
The Property Ombudsman, a government-approved organisation that protects homeowners, landlords and tenants, sees around 1,000 complaints a year from landlords about letting agents. Lack of communication ranks high among the reasons.
“Landlords often feel the agent fails to keep them informed of issues or doesn’t carefully explain their fees,” says ombudsman Katrine Sporle. “Management issues are another top cause for complaint – failing to conduct quarterly inspections or deal with repairs needed at the property. Referencing is another. Landlords sometimes feel the agent hasn’t informed them of issues disclosed during the referencing process,” says Ms Sporle.
Landlords often feel the agent fails to keep them informed of issues or
doesn’t explain their fees
If a landlord is unhappy with the service from their letting agent, the first step is to speak directly to the agent. “A poor agent can cause long rent voids or poor-quality tenants, which can be very costly to a landlord,” says Louis Assheton, property consultant at The Red Property Partnership.
“We have seen cases where agents take unauthorised actions due to the landlord being out of the country. This can lead to damage, lack of rent and the eventual need to get the authorities involved in order to evict unauthorised tenants.”
Landlords should read and understand anything they sign, “to avoid surprises down the line, particularly with landlord fees and what the landlord is expected to have organised prior to a tenancy starting”, says Lucy Morton, head of residential agency at JLL. “Most problems we see stem from the landlord’s lack of understanding of the lettings process. They are not always aware of current legislation that ensures they are fully compliant.”
If an attempt to resolve matters directly with the agent gets nowhere, the landlord can ask the Property Ombudsman to assist, provided the letting agent is a member, as 85pc of agents are.
“As a genuine alternative to the small claims courts, we offer free, fair and impartial redress to consumers – landlords, tenants, buyers or sellers – who have been unable to resolve a dispute with their agent. A member agent can be held to account for their actions thanks to the scheme’s codes of practice,” says Ms Sporle.
There is one further action that disgruntled landlords can take: find another letting agent. “It’s the biggest power a landlord has, to dismiss the agency and instruct another in their place,” says Lisa Simon, head of lettings at Carter Jonas. “The terms of business they sign should clarify how they can serve notice, which is typically three months if the property is managed.”
Disputes aside, for landlords who have full-time jobs and little time to keep on top of new legislation and maintenance issues, having someone else to manage the property is undoubtedly the easiest solution.
Some landlords make sure their lettings agent earns their crust too, such as one based in China who was told the tenants in his London property had reported mice. His reply to his agent? “Tell them to get a cat.”